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A visitor looks at Toyota Motor Corp's cars at the company's showroom in Tokyo

Toyota posts $6.7 billion in quarterly profits

Tokyo, August 3, 2013

Japanese automaker Toyota posted its second best quarterly operating profit at 663.4 billion yen ($6.69 billion), with currency moves, mostly the yen's depreciation, accounting for more than 80 per cent of the rise.

While the company raised its profit forecast for the year to next March, the 8pc tweak to 1.94 trillion yen was well short of the near record 2.27trn yen result analysts are expecting, according to a report in the Gulf Daily News, our sister publication.

The world's biggest carmaker trounced its rivals Volkswagen and General Motors in earnings for the period as a weaker yen made exports more profitable and allowed Toyota to convert money made overseas at a more profitable rate.

"But we will have the new Corolla going on sale in North America and a new compact car for the emerging markets, so we will aim to boost sales."

Analysts seemed unconcerned by the company's cautious stance, even as it also trimmed its US vehicle sales target slightly to reflect a rise in demand for SUVs and pickup trucks where its US rivals are stronger.

"Although the raised full-year operating profit forecast of 1.94trn yen is below the market consensus, there's no need to see this as a negative," said Toyo Securities analyst Takumi Hoshi.

Toyota was reaping benefits from strong sales, a weak yen and cost reductions, he added. - TradeArabia News Service